22 Juni 2012

Quickstep Secures Second Long Term Agreement to Supply F-35 Joint Strike Fighter Components

22 Juni 2012

JSF manufacturing (photo : JSF)

Perth –
Quickstep Holdings Limited (ASX Ticker: QHL), an Australian-based advanced
composites manufacturer, is pleased to
advise that it has secured a second Long Term Agreement (LTA) with
Northrop Grumman Corporation (NYSE:NOC) to manufacture parts for the
international F-35 Lightning II Joint Strike Fighter (JSF) program.

The LTA
covers production of “Group 2” JSF components until 2020, and follows the LTA
signed in February 2011 for Group 1 JSF components, for which manufacturing is
now underway. Group 2 parts represent more complex aircraft components,
including portions of the main F-35 structure and supports.

The first
Purchase Order for Group 2 parts is expected to be received in July 2012.

The signing of the LTA follows Quickstep’s successful
completion of a qualification
process to demonstrate production readiness for the manufacture of Group 2
parts.

Managing
Director of Quickstep, Mr Philippe Odouard, said the securing of a second LTA
with Northrop Grumman represented a further endorsement of the Company’s
aerospace manufacturing capabilities.

“Through our
production of Group 1 JSF parts, Quickstep has confirmed its ability to
successfully undertake advanced aerospace manufacturing contracts and feed into
Northrop Grumman’s international supply chain for the
F-35 project,” he said. “This expansion of Quickstep’s contracts to
include Group 2 parts will increase the number and variety of components the
Company will supply to the JSF program.”

Lockheed
Martin’s F-35 programme manager, Mr Tom
Burbage, recently congratulated Quickstep
on its work relating to the JSF program,
saying: “One of our most innovative and critical suppliers, Quickstep
Holdings, completed source inspection of their first F-35 production parts at
their Perth facility. To date, Quickstep has met – and in many cases
outperformed – all JSF delivery
deadlines. We don’t often get to recognize the excellent performance of our
global supply chain, but there are many companies worldwide working very hard
to make the F-35 successful. Thanks to
all of them and a special well done to Quickstep.”

The Group 2
LTA represents the second in a series of three agreements which will implement
the Memorandum of Understanding (MOU) that was signed in November 2009 with
F-35 prime contractor Lockheed Martin (NYSE: LMT) and Northrop Grumman, one of
its principal F-35 subcontractors. Under the MOU, Quickstep will supply a number
of different JSF components, including
lower side skins, maintenance access panels, fuel tank covers, lower skins and
ammunitions doors.

Quickstep
expects to secure the third and final LTA to manufacture Group 3 JSF parts
later this year.

Philippe
Odouard said that Quickstep’s involvement in the JSF program has not been
impacted by reported delays to the program.

“We will
continue to communicate with Northrop Grumman and Lockheed Martin with regards
to future

purchase
programs, however at this stage we do
not anticipate any immediate impact on the ramp-up of our operations in
Australia,” Mr Odouard said.